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regressive tax |
Also found in: Legal, Financial, Wikipedia, Hutchinson | 0.03 sec. |
regressive taxTax levied at a rate that decreases as its base increases. Regressivity is considered undesirable because poorer people pay a greater percentage of their income in tax than wealthier people. Consumption taxes and sales taxes are usually considered regressive because of their set rate structures. Tobacco, gasoline, and liquor sales taxes, all major sources of tax revenue, are the most regressive taxes. In an effort to limit regressivity, a number of U.S. states have exempted medicine and grocery items from sales tax. Although the property tax is sometimes judged regressive because poorer people spend a larger percentage of their income on housing than wealthier people, property taxes are nonetheless effective in redistributing wealth from higher to lower income groups. See also progressive tax. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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``It is the most regressive tax there is, with no consideration of equity. VICA believes that our state legislators can accomplish these priorities without creating a punitive and regressive tax burden for California businesses and residents. Farm protections act as a regressive tax, with higher prices at the grocery store negating some or all of the income support the government seeks to deliver via programs such as food stamps. |
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